DECISION MAKING IN CONSUMER BEHAVIOUR Consumer Behaviour Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. Consumer Behaviour Decision process ■ Need Recognition ■ Information Search ■ Evaluation of alternatives ■ Purchase ■ Post purchase Behaviour Cultural Factors affecting Consumer Behaviour ■ Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. It is the culture of an individual which decides the way he/she behaves. In simpler words, culture is nothing but values of an individual. What an individual learns from his parents and relatives as a child becomes his culture. ■ Example - In India, people still value joint family system and family ties. Children in India are conditioned to stay with their parents till they get married as compared to foreign countries where children are more independent and leave their parents once they start earning a living for themselves. The influence of cultural factors on buying decision of individuals Each culture further comprises of various subcultures such as religion, age, geographical location, gender (male/female), status etc. ■ Religion (Christianity, Hindu, Muslim, Sikhism, Jainism etc)-A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas a Christian bride wears a white gown on her wedding day. It is against Hindu culture to wear white on auspicious occasions. Muslims on the other hand prefer to wear green on important occasions. Cultural Factors Cont…. ■ Status (Upper Class, Middle class and Lower Class)-People from upper class generally have a tendency to spend on luxurious items such as expensive gadgets, cars, dresses etc . A person who finds it difficult to make ends meet would rather prefer spending on items necessary for survival. Individuals from middle class segment generally are more interested in buying products which would make their future secure ■ Gender (Male/Female)-People generally make fun of males buying fairness creams as in our culture only females are expected to buy and use beauty products. Males are perceived to be strong and tough who look good just the way they are. Social Factors affecting Consumer Behaviour ■ Human beings are social animals. We need people around to talk to and discuss various issues to reach to better solutions and ideas. We all live in a society and it is really important for individuals to adhere to the laws and regulations of society. Social Factors influencing consumer buying decision can be classified as under: ■ Reference Groups ■ Immediate Family Members ■ Relatives ■ Role in the Society Reference Groups-Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with. Every individual knows some people in the society who become their idols in due course of time. 1. Primary Group - consists of individuals one interacts with on a regular basis. ■ Primary groups include: ■ Friends ■ Family Members ■ Relatives ■ Co Workers 2. Secondary Groups - Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis, Example - Religious Associations, Political Parties, Clubs etc. Personal Factors affecting Consumer Behaviour ■ Occupation ■ Age ■ Economic Condition ■ Lifestyle ■ Personality Psychological Factors affecting Consumer Behaviour ■ Motivation ■ Perception ■ Learning ■ Beliefs and Attitude Role of Consumer Behaviour in Marketing There are ideally two different ways which enable marketers to understand their consumers. ■ Primary Research -refers to a research methodology where marketers interact with consumers directly and gather as much information as they can. Information is generally collected through surveys, questionnaires, feedback forms, interviews etc. ■ Secondary Research -Secondary Research often refers to relying on information which has been collected by others at some point of time. THANK YOU